Consumer electronics driving growth and volatility
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Electronic Business has an article entitled “Consumer electronics fueling EMS industry growth in India” that talks about the incredible growth in India and the impact it’s having on the EMS industry. Past research has shown that electronics manufacturing is now driven more by consumer purchases than business or commercial purchases.
The implications of this are huge. I know my kids are already into the latest gadget, which have become at least equal parts fashion trends to them as they are consumer electronics. It’s not just about the features, it’s about how they look and which one’s are “cool” with their friends.
This leads to incredible volatility of demand and rapid product innovations, which in turn have enormous ramifications on the supply chain management challenges of both OEMs (brand owners) and EMS companies. More so than ever, being able to respond to these changes is what dictates success or failure.
